HBA-AMW H.B. 3454 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3454 By: Tillery Financial Institutions 4/20/2001 Introduced BACKGROUND AND PURPOSE Current law compels financial institutions to comply with certain requests from a regulatory agency for financial institution records. The requests from regulatory agencies are usually reasonable and narrow in scope. However, a request may place an undue burden on smaller institutions if the information requested is substantial or not easily obtained. House Bill 3454 provides relief for a financial institution in district court if the institution establishes that the request for financial institution records is onerous or unreasonable. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3454 amends the Finance Code to authorize a financial institution that receives a request for certain financial institution records (records) to bring an action in district court for relief. If the financial institution establishes in the action that the request for records is unreasonable or onerous, the bill authorizes the court to issue an order limiting the scope of the records that the financial institution must provide, requiring the person requesting the records to pay the financial institution's reasonable cost of complying with the request, or both limiting the scope of the investigation and requiring payment of reasonable costs of compliance with the request. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.